IMF Staff Country Reports

This paper highlights Zambia’s 2023 Article IV Consultation, First Review under the Extended Credit Facility (ECF) Arrangement, and Financing Assurances Review. Zambia’s performance under the program remains strong. All quantitative performance criteria for the first review and nine structural benchmarks have been met, with only marginal delays in the remaining two. The authorities have taken bold steps to restore fiscal sustainability, raise social spending, and strengthen economic governance. This ambitious reform agenda aims to reverse the impact of past economic mismanagement and shocks, such as coronavirus disease 2019, and raise growth, create jobs, and reduce poverty. Zambia’s reform efforts since the inception of the ECF have been commendable. Zambia's agreement with the Official Creditor Committee (OCC) under the G20 Common Framework on a debt treatment consistent with program parameters is very welcome. Swift finalization and signature of the Memorandum of Understanding with the OCC will be important. Timely implementation of this agreement, together with agreements with private creditors on comparable terms, should restore Zambia’s debt sustainability over the medium term.